Stephen R. Parker
ABSTRACT
Outcomes of this modeling research are the ability to
facilitate comparisons of investment alternatives or
strategies; regarding primary targets, possible annual
revenues, promotion incentives, operating budgets, and
“other” capital expenses. The analyst will have a
simulator to evaluate multiple courses of action when
considering opportunities regarding possible future
investments or “Walmart” locations.
The results are described visually, allowing the client
or customer the capability to view the model through
animation support. This allows the customer the
opportunity to fully understand the strategies associated
with various financial opportunities, and explore “whatif”
and “why-not” analysis.
As part of the approach, a symbolic network
representative language was implemented which
combines the continuous variable features of system
dynamics and the discrete event features of conventional
simulation techniques.
The contribution of this research is a prescribed
method for the strategic analyst to simulate cash flow
profiles which can be used to analyze and assess
investment opportunities with great accuracy and
confidence in building strategies to support corporate
growth. |